China blocks $23 billion sale of Panama Canal, other ports worldwide to BlackRock-owned group

Chinese antitrust regulators are investigating a US consortium’s deal for two ports in the Panama Canal zone, reportedly delaying the deal’s closing that was originally set for next week.

President Donald Trump had previously claimed China controls the canal (Panama controls it, although China owns ports on both sides of the crucial maritime passage). Trump has threatened to have the United States once again take control of the canal between the Atlantic and Pacific oceans.

The deal, led by BlackRock, the world’s largest asset manager with an enormous pool of $11.6 trillion in assets, was announced earlier this month and was widely viewed as a way to ease tensions in the region. BlackRock agreed to lead a group that would buy Hong Kong firm CK Hutchison’s controlling interest in 43 other ports around the world, comprising 199 berths in 23 countries.

But China’s State Administration for Market Regulation, the top market regulator, said in answer to a question posed by the state-owned newspaper Ta Kung Pao that it had started an investigation into the deal “In accordance with the law to protect fair competition in the market and safeguard the public interest.” The same statement was reposted on Friday on the website of China’s Hong Kong and Macao Affairs Office.

Following that announcement, CK Hutchinson decided that “there will not be an official signing of the two Panama ports deal next week,” according to a report in the South China Morning Post, citing a source close to the Hong Kong firm.

The 51-mile canal is a crucial passage for both cargo ships and military ships to travel been the Atlantic and Pacific oceans. About 4% of the world’s maritime trade and more than 40% of US container traffic goes through the canal.

Tensions between China and the United States have been growing recently. The Trump administration has announced new tariffs of 20% on all goods imported from China, and China has pushed back with pressure of its own. The Trump administration is planning to announce additional tariffs on trading partners next week.

The Panama Canal was built by the United States in the early 20th century and was finished in 1914. For most of that century, it was run by the US, before the Carter administration negotiated its handover to Panama in a controversial treaty that many Republicans opposed at the time.

The canal is key to Panama’s economy. In 2024, the canal earned nearly $5 billion in total profits. According to a study released in December by IDB Invest, 23.6% of Panama’s yearly income comes from the canal and companies that provide services related to the canal’s operations.

Since its handover in 1999, the canal itself has been operated by Panama, not China, despite Trump’s stated concerns.